MTR : Pre-blackout Presentation

MTR Corporation

Company Overview

Dec 2018 to Jan 2019

Forward-looking statements

Certain statements contained in this presentation may be viewed as forward-looking statements. Such forward- looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations

implied by such forward-looking statements.

MTR Today

1H2018 Underlying Profit2

HK$4.6 billion

1H2018 Recurrent Profit1

HK$4.5 billion

Transport Operations Station Commercial Property Rental Outside Hong Kong Property Development#

Note:

1.	Recurrent Profit: $4,483M - Net Profit attributable to Shareholders of the Company arising from Recurrent Businesses (comprising Hong Kong Transport Operations, Hong Kong Station Commercial
Businesses, Hong Kong Property Rental & Management Businesses, Mainland of China and International Railway, Property Rental and Management Businesses and Other Businesses)
2.	Underlying Profit: $4,648M - Net Profit attributable to Shareholders of the Company arising from Underlying Businesses (comprising Recurrent Businesses and Property Development Businesses)
3.	Reported Profit (not shown here): $7,083M - Net Profit attributable to Shareholders of the Company arising from Underlying Businesses and Investment Property Revaluation
#	Property development profit mainly from sales of inventory units and car parking spaces, agency fee income from West Rail property developments

Vision: a leading multinational company that connects and grows communities with caring services

Rail + Property Business Model

MTR leads and coordinates the development processes including:

• • Agrees with Government amount of property development rights for new rail extension

• • Land premium is negotiated with Government on "greenfield basis"*, prior to tender being offered to developers

• • Tender property packages to developer partners

• • MTR contributes property rights, oversees the design & construction

• • Developers usually pay for land premium and development costs; MTR may contribute on a case by case basis

• • Profit sharing with MTR by percentage of profits or assets in kind or lump-sum payment

*Greenfield basis = market value ignoring the presence of the railway

Examples of MTR "Rail + Property" Development

Tung Chung Station Development

• • Total GFA: 1,030,634 sq m (Retail: 55,793 sq m; Office: 14,913 sq m)

• • ~12,400 residential units

Tseung Kwan O LOHAS Park Development